Now that i see this question. Yes you should go ahead and connect with a hard lender. I have two contacts with hard lender in Dallas that I can share with you.
Before you make an offer, get preapproval and know what your monthly payment will be. As I have mentioned in my other tread - its usually 6months to up to a year. You need to do a very good job with time management so you can get your return in money. You need to ad the repairs cost, interest expense and property tax expenses all together as your cost to make sure this is a good flip. You also need to get with a realtor to get you comp reports to make sure 275-290k is still the going rate after rehab value as it changes all the time and its always the best to get a professional opinion to protect your investment.
You can email me at email@example.com. I have worked with many investors in North Dallas and I can help you every step of the way.
JP and Assocaites
Then I most often see them underestimate the repairs costs.
Then the ARV numbers they use are often inflated.
That's not every wholesale, but I get the emails every week from lots of wholesalers and the numbers are often 5-10% better or worse consistently than the numbers I would give you.
My suggestion for a first time flipper is.....#1 Read the book FLIP before you ever even think about tackling one. http://www.amazon.com/gp/product/0071486100/ref=as_li_qf_sp_
Then take on a small project the first time. Redo a $19,000 condo...or a $40,000 house, or one you can pay cash for up front. Do the paint and carpet and the minor repairs....and flip that one. Once you get experience with 2-3-4, then take on the bigger ones like this.
Most of these type of houses will never take an Assigns contract.
Congratulations you came across a great opportunity that you can have under contract with an approximate equity of $150,000. Please keep in mind cost of repairs is subjective to whoâ€™s repairing it.
When you minus $130 â€“ $280 (average sale) = $150 equity
I suggest wholesaling the deal at 3-10% of equity spread.
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We have a very simple program that can provide you with a loan, unsecured, from $5,000-$250,000. We provide stated, no document business loans for start up ventures as well as investment property loans. We consider someone who buys an investment property to be in business. You would be able to finance the repairs/upgrades.
You should have at least a 620 credit score but higher is better. We do allow a co-signer so even if the credit score isn't perfect we would still love to talk to you.
A couple of notes: we base the loan completely on your credit. Some of the things that will be looked at are debt ratio, how long your credit history is and if you have a lot of new credit. We have to feel you have the ability to repay the loan. Also, we can't loan to those that have had bankruptcies. This is not a hard money loan it is a business loan. This is basically a stated loan and as you know there is nobody doing those anymore.
If you or someone you know could use a loan for a home, business expansion, operating capital, business startup or for almost anything let us prove to you just how good we really are. You're welcome to contact me anytime.
Hope to work with you soon,
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Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
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United Real Estate Dallas
That repair budget is a little on the high side but I would be open to looking at it. You will need a good sum of money down at closing for a larger deal like this as well. I typically lend 90% of purchase plus 75% of repairs. Give me a call if you want to discuss further.
An assignment will bring you less money but much quicker. Basically, you get the house under contract as yourself "and/or assigns". Then you 'sell' the contract to someone who wants to do the repairs themselves and complete the 'flip'.
You have a couple of choices.
Make a little "wholesale" money, by putting the home under contract and flipping the contract to another investor. Wholesalers usually try to just make $1000 or $2000 in this situation. You probably only have a few days to flip it, so you can't get greedy with trying to make a lot more. Get in Get Out, make a little.
Second option is to buy it, rehab it, and resell it. You'll likely need a hard money loan to do this, but you stand to make more money. A lot more money, but also with more risk.
60-70K on rehab sounds very high to me. Any way to tighten your numbers? How confident are you on your before and after numbers?
Keller Williams Realty